Corporate governance in Germany: The changing role of the banks

The article analyses the different channels ‐ industrial stakes, supervisory board mandates, proxy voting ‐ by which German banks can exert influence on industrial companies. The central thesis is that even where the banks have such influence they do not dominate the companies. A recent empirical study on the effects of the alleged bank dominance over industrial companies with detrimental effects on their performance is shown to contain major methodological mistakes. The relationship between banks and industry is undergoing some distinct changes. Banks have substantially reduced their industrial stakes as well as their representation on supervisory boards, which underlines that they are not striving for industrial leadership. Despite a clear trend in the German corporate sector to pay increasing attention to shareholder value and to provide more transparency in accounting, it seems premature to expect the German capital market, including the corporate governance system, to incorporate fully the Anglo‐Saxon model in the immediate future.     

War Crimes Prosecution in Bosnia and Herzegovina (1992-2002): An Analysis through the Jurisprudence of the Human Rights Chamber

The authors examine the efforts to bring persons suspected ofwar crimes committed during the 1992–1995 war in Bosniaand Herzegovina (BiH) to justice before the national judiciary.The analysis is based on the case law of the Human Rights Chamberfor BiH, which from 1996–2003 was the highest court competentto adjudicate violations of human rights in post-war BiH. TheChamber heard complaints linked to war-time atrocities fromtwo main perspectives: (i) that of persons put on trial forwar crimes and (ii) the perspective of the relatives of war-crimesvictims complaining about the failure to investigate and prosecute.The Chamber cases establish that (a) the few prosecutions whichtook place were nearly exclusively directed against suspectsbelonging to the war-time adversary, (b) the authorities failedto comply with the Rules of the Road (a procedure put in placeto enable the International Criminal Tribunal for the formerYugoslavia (ICTY) to supervise Bosnian war-crimes prosecutions)and (c) suspects were often severely ill-treated to extort confessionsand denied a fair trial. The rule, however, was the lack ofany investigatory or prosecutorial action, with the exceptionof the so-called ‘ethnically mixed’ Cantons of theFederation of BiH, where proceedings were sometimes initiatedbut failed to yield an appreciable outcome. The authors discussthree reasons for the poor record: (i) ethnic bias among theauthorities, (ii) disempowerment and passivity of the victimsand (iii) failure to enact legislation that would give effectto and clarify the BiH side of the obligation to exercise jurisdictionconcurrently with the ICTY. They finally set forth some suggestionson lessons to be learned for future attempts to bring justiceto a war-torn society by the concurrent exercise of criminaljurisdiction by an international court and the judiciary ofthe country in transition.     

Organizational power and distributional conflict within OECD nations

Abstract. This article claims that a predator-prey model of cyclical growth is a useful concept for studying the dynamic relationship between wage and salary shares of GDP and employment. The rate of growth of employment is considered as an indicator of union bargaining strength; the change of the wage share is treated as a reflection of an ongoing distributional conflict between profits and wages. The paper discusses some of the analytic properties of the formal model. It continues with an attempt to fit the model to West German data for the period from 1960 to 1985. Given the formal rigidity of the model, this strategy is only partially successful. As a consequence, a more complex model is introduced which also relies heavily on the idea of a predator-prey cycle. As a fully-fledged political-economic model of the OECD type of systems, it allows us to study, among other issues, the implications of different union policies under the constraint of a serious unemployment problem.     

Fatal crossbow injury in an adolescent

The authors present the case of a 14-year-old boy who died while handling a crossbow, which was a gift from a friend's mother. The bolt passed through the right nostril, penetrated the sinus sphenoidalis, the brain stem, the left occipital lobe and the occipital calvaria. Immediately after the accident, the victim was taken to a maximum care hospital. In spite of neurosurgical treatment and intensive care the victim died 4 days later. The case presented demonstrates that crossbows are not suitable as toys for underage persons, as they are deadly weapons which can cause serious penetrating injuries. In Germany, no license is required to buy and/or possess crossbows. In the authors' opinion, legal restrictions on the sale of crossbows and a special training of the users would be reasonable measures to reduce such accidents.     

The prohibition to abuse one's human rights: A theory

Supporters of communism, national socialism and radical Islamism, but also people who incite racial hatred or deny the Holocaust, see their rights severely curtailed by the abuse clause of Article 17 of the European Convention on Human Rights. To make sense of this provision, this paper first introduces the distinction between abusable and non‐abusable rights in order to delimit the scope of Article 17. Then, this paper suggests a “test” to spot instances of abuse of human rights by borrowing the concept of performative self‐contradiction from speech act theory. Article 17 is reconceptualised as dealing with conduct that self‐contradictorily uses rights but simultaneously denies their very idea. In this way, it becomes possible to make sense of and to unify the disparate case law that Article 17 has generated so far: it equally targets political human rights abuse, attacking liberal democracy in general; and exclusionary human rights abuse, attacking the rights of other people.     

Bad banks: a proposal based on German financial history

In conventional bad bank models, the estimated fundamental value of the illiquid assets is paid to the ailing bank, thereby leaving considerable economic risk with the asset management company. In this paper, a different approach is proposed which combines the bad bank solution with equalization claims, an instrument that has successfully been used in two previous German debt crises. The main idea is to temporarily swap toxic assets for government bonds with an open maturity date. This approach not only leaves total losses with the banks, but also avoids the problem of evaluating the toxic assets in advance. The current German bad bank legislation largely follows this idea, but suffers severely from unnecessary complexity and lack of participation by commercial banks.